Online Tax Software Review

Online tax software and e-filing services make preparing taxes easier and can help you receive your tax return payment faster than the traditional printed form and mail method of filing. In December of 2010, new tax laws passed that makes filing for the 2010 Federal tax season more challenging than usual and some types of returns cannot even be processed till the IRS has had time to implement these changes. This year the IRS is actually encouraging e-filing of taxes because it can help tax payers create accurate returns that address the new changes.

Online tax services and tax preparation software such as TurboTax, H & R Block and TaxACT can guide you through the entire filing process and will ask you all the questions necessary to help you maximize the deductions and credits you qualify for. They will also check for inconsistencies and inaccuracies. In this site you'll find helpful articles on online tax software as well as comprehensive reviews on TurboTax, H&R Block and TaxACT. Side-by-side comparisons will help you make an informed decision on which online tax service is right for you.

Here are some advantages to online tax software:


Easy Tax Preparation
If you have never used online tax software services and have always filed by paper, forget everything you know about filing taxes. With an online tax service you do not need to collect booklets and forms or copy information from box to box, or even buy stamps – it does it all for you.

Guided Interviews
Instead of filling out forms, these services ask questions to help determine how to process your taxes. These questions may be about life changes, such as birth or marriage or buying a house, or they may be questions about your income, such as whether you received unemployment or interest income. The answers to these simple questions can help the online tax software know which forms you need to file and what information you need to collect to process your return.

Accuracy
With online tax software you do not need to do any math or worry about information that does not match. For example, most of these services will be able to tell you if you enter information that does not correspond with other entries, and some will even tell you if the information you report from your W-2s, such as Social Security paid, is inaccurate.

Fast Tax Refunds
Online tax software services provide e-filing, which is the fastest way to file taxes online. Returns filed in this manner can often be acknowledged as received by the IRS within 48 hours. Generally, refunds sent by mail can be expected to be received within three weeks, or half the time with direct deposit. With an online service you can expect to receive your refund by direct deposit within 8 to 15 days.

Support for Complex Tax Filings
Even though these services can be used to easily file 1040 and 1040EZ forms, they also provide services for people filing business taxes, those with investments and property, and those that need to file as a sole proprietor or consultant.

Fast State Refunds
These tax services can also prepare state tax returns. Many of them can even automatically determine your state refund or owed amount by importing your data from your federal return. Some services offer a package deal where you can pay one fee for both federal and state filing; others require a separate fee for state filing.